DRAFT RESOLUTION ON OIL PRICES proposed to Cleveland City Council


WHEREAS the price of oil has more than tripled since January of 1999 to over $35 per barrel, the highest price since the Gulf War crisis 10 years ago, and threatens to go even higher over the coming weeks and months; and

WHEREAS the high level of oil prices has already led to massive social conflict an economic hardship in western Europe and other parts of the world; and

WHEREAS the high level of oil prices threatens severe economic hardship against the citizens of Cleveland this Winter, since home heating oil prices have increased by an average of 50% over the past 12 months, and skyrocketing energy prices could cause a hyper-inflationary explosion throughout the economy: and

WHEREAS oil prices have continued to rise despite increased production by OPEC countries, suggesting that other factors, such as speculation in oil price futures and other markets, are to blame for the oil price crisis; and

WHEREAS the skyrocketing of oil prices began just weeks after the purchase of AMOCO by British Petroleum in August 1998, and the merger of oil giants Exxon and Mobil in December 1998, leading to suspicion that oil markets are being manipulated upwards, to generate the super-profits needed to pay the massive costs of mergers and acquisitions among the oil multinational corporations; now, therefore

BE IT RESOLVED BY THE COUNC1L OF THE CITY OF CLEVELAND:

Section 1. That the Council of the City of Cleveland urges the President of the United States, and the United States Congress, to take emergency action to reduce oil prices, including an investigation of possible market manipulation through speculation or other unfair practices, and the possibility of bypassing the oil multinational corporations completely, by negotiating government-to-government purchasing agreements directly with the oil-producing countries.

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LaRouche's Oil Policy Memorandum, September 22, 2000.